How Much does Homeowner’s Insurance Cost?

One of the first things consumers ask our office is how much will my Homeowner’s Insurance Cost.  While we can give a rough estimate there are a number of factors that go into your homeowners insurance rate.

The biggest factor is the amount of Dwelling Coverage purchased.  The higher the dwelling coverage, the higher your premium will be.  Your Dwelling Coverage, also known as Coverage A, needs to be enough to cover the replacement cost to rebuild your home and attached structures.  In most cases companies will use Replacement Cost Estimators or other valuation services that advise them what it will cost to rebuild your home.  The numbers that these outlets provide may not take into account renovations that may have been done to your home.  Talk with your agent about this process, especially if you have recently done some work to your home. Please note that replacement cost and the market value of your home are not always the same.

There are some fixed factors that have an impact on your homeowners insurance premium. They are as follows:

  • Location, Location, Location – Depending on where your home is located will determine the Protection Class.  Protection Classes go from 1 to 10.  The lower the number the better.  Protection Classes are based on the number of fire stations in your area and how well your local fire fighters respond to emergency calls. The distance your home is from the nearest fire hydrant also affects your rating. Another major location factor is coastal versus non-coastal.  Usually homes in coastal counties will have higher premiums due to risk of hurricanes and tropical storms.
  • Age of Home – This is pretty self explanatory.  The older the home, usually the higher the premium. However updates and renovations can lessen the impact.
  • Construction of the Home – If your home is wood framed versus constructed out of brick, you will more than likely pay a higher premium for your homeowner’s insurance.  The reason is that wood framed homes have additional risks.  These risks include fire, termites, and the risk of rotting.
  • Claims History – If you have filed previous homeowners claims, insurance companies will view you as a higher risk thus increasing your rates. Claims filed on your home by previous owners can sometimes impact your rates.  This depends on the insurance carrier.

There are other factors that impact your Homeowners Insurance that can be adjusted. These include, but are not limited to:

  • Deductibles – A deductible is an insured’s “skin in the game”.  This is what the homeowner will pay out of pocket when a covered loss occurs.  The higher the deductible, the lower the premium.  The lower the deductible, the higher the premium.
  • Personal Liability Protection – Also known as Section II of a Homeowners Policy, Personal Liability Protection provides coverage for a suit that may be brought because of bodily injury and/or property damage from the acts or non-acts of the insured. Limits of liability range from $100,000 to $500,000. The higher the liability amount the higher the premium and vice versa.
  • Personal Property Coverage – Most companies automatically provide coverage for Personal Property based upon 70% of Coverage A (Dwelling) with the option to increase coverage.  However some companies allow you to lower your Personal Property Coverage.  Here again, the higher Personal Property Coverage the higher the premium.
  • Discounts – Insurance companies vary when it comes to discounts.  The most common discount is one for bundling your home and auto with the same company.  Other discounts may include safety features such as an alarm systems.  There are multiple ways insurance companies can provide discounts.  Make sure to check with your agent to let you know all the discounts that may be available to you.

**Noted below is a study done by Value Penguin that notes the average cost of Homeowners Insurance in each state in 2018.  Remember that this is an average and depending where you are located within each state can have result in your homeowner’s premium being higher or lower that the numbers below.

**Average Cost of Homeowners Insurance**

We reviewed homeowners insurance premiums in every state on both a monthly and annual basis. Below, we’ve also included how each state stacks up against the national average annual premium of $1,083. A positive number in the “% Change vs. Avg” column represents a state that’s more expensive than average, while a negative value represents a cheaper than average state. Homeowners premiums in different states vary widely, and depending on where you live, the average cost of home insurance may range from approximately $600 to $2000 per year.

Rank State Monthly Homeowners Insurance Annual Homeowners Insurance % Change vs Average
44 Alabama $112 $1,340 24%
22 Alaska $81 $976 -10%
8 Arizona $64 $765 -29%
39 Arkansas $104 $1,252 16%
21 California $81 $974 -10%
41 Colorado $106 $1,273 18%
43 Connecticut $111 $1,337 23%
34 D.C. $96 $1,151 6%
7 Delaware $61 $736 -32%
51 Florida $171 $2,055 90%
30 Georgia $91 $1,089 1%
26 Hawaii $85 $1,018 -6%
2 Idaho $49 $590 -46%
23 Illinois $82 $987 -9%
19 Indiana $79 $944 -13%
12 Iowa $71 $853 -21%
46 Kansas $119 $1,431 32%
28 Kentucky $85 $1,023 -6%
49 Louisiana $154 $1,847 71%
10 Maine $68 $811 -25%
18 Maryland $79 $942 -13%
42 Massachusetts $110 $1,314 21%
13 Michigan $72 $865 -20%
36 Minnesota $102 $1,219 13%
47 Mississippi $121 $1,447 34%
35 Missouri $100 $1,199 11%
25 Montana $84 $1,003 -7%
37 Nebraska $102 $1,226 13%
6 Nevada $59 $704 -35%
16 New Hampshire $75 $905 -16%
31 New Jersey $91 $1,092 1%
17 New Mexico $78 $937 -13%
40 New York $105 $1,256 16%
29 North Carolina $88 $1,056 -2%
32 North Dakota $95 $1,136 5%
9 Ohio $66 $797 -26%
48 Oklahoma $148 $1,772 64%
1 Oregon $48 $574 -47%
15 Pennsylvania $74 $893 -18%
45 Rhode Island $117 $1,398 29%
38 South Carolina $103 $1,240 14%
24 South Dakota $83 $995 -8%
33 Tennessee $95 $1,139 5%
50 Texas $162 $1,947 80%
3 Utah $53 $634 -41%
11 Vermont $70 $844 -22%
20 Virginia $79 $946 -13%
5 Washington $58 $695 -36%
14 West Virginia $73 $877 -19%
4 Wisconsin $57 $686 -37%
27 Wyoming $85 $1,021 -6%

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